Reddit’s IPO Fate Rests With Users Who Fueled Meme Stock Frenzy

When Reddit Inc. lists on the New York Stock Exchange this week, its fate will rest, in part, in familiar hands: those of its users.

The company has reserved about 8% of its long-awaited public offering for its most prolific users, including volunteer moderators who help tame the platform. Their shares won’t be subject to a lockup, meaning the owners can sell them on the opening day of trading. Some of those users have already threatened to bet against the company.

“We’ve all seen what subreddits can do for companies, both positive and negative,” said Kyle Stanford, lead venture capital ...